Goldman Sachs‘ newest cost-cutting initiative, internally nicknamed “Undertaking Voyage,” will ask choose managers to maneuver from central hubs just like the financial institution’s downtown New York Metropolis workplace to rising places like Salt Lake Metropolis and Dallas — or depart the company.
In keeping with a Bloomberg report, the funding financial institution is transport its managers to rising locales to assist develop expertise pipelines in areas the place the corporate is rising, due to the efforts of primarily junior-ranking staff.
Transferring managers to Dallas and Salt Lake Metropolis might additionally enable Goldman to capitalize on workplace house. The price of renting a business workplace constructing in Manhattan was about $80 per square foot, in comparison with round $26 per square foot for Salt Lake Metropolis and Dallas.
In the meantime, Goldman is constructing a $500 million campus in Dallas in 2028 and is on observe to extend its present headcount of 4,600 employees within the space to five,000 by the point the workplace opens.
Residing and dealing exterior of NYC additionally offers staff extra worth to their paychecks — NYC’s value of dwelling is 130% greater than the nationwide common, with a median hire of $7,749 monthly, per Payscale. In the meantime, Salt Lake Metropolis’s total value of dwelling is 10% greater than common, with a median hire of $1,944 per month, and Dallas’ value of dwelling is 2% greater, with a median hire of $1,497 per month.
Associated: Where Do You Have the Most Buying Power? In These 4 Cities, Your Paycheck Is Worth More Than It Seems.
As a part of Undertaking Voyage, Goldman Sachs is gearing to chop round 3% to five% of its 46,500-person workforce within the coming months. The Wall Street Journal reported earlier this week that Goldman will make cuts within the spring this yr, as an alternative of in September because the financial institution has done in recent years.
In keeping with Business Insider, Goldman divisional heads are presently figuring out who to chop and relocate. Some jobs which can be misplaced by means of cuts this spring will probably be backfilled with roles exterior of New York in lower-cost locales like Dallas.
In the long run, Goldman seeks to scale back bills by $1.3 billion total by shedding some staff and shifting others to lower-cost places. The financial institution first voiced the target at its first-ever investor day in 2020, per Bloomberg.
Undertaking Voyage started within the fourth quarter of 2024 as a multi-year initiative to save lots of the corporate cash, per BI. The layoff and relocation plan impacts a number of divisions throughout the financial institution, together with world banking and markets, engineering, advertising, and operations.
In keeping with the WSJ, the layoffs will deal with lowering the variety of vice presidents at Goldman. VPs, a gaggle between associates and managing administrators, are a big and expensive a part of the financial institution, with their ranks ballooning out far sufficient in recent times that VPs have been reporting to different VPs as an alternative of managing administrators, per BI.
Glassdoor data exhibits {that a} Goldman VP can value the financial institution as much as $325,000 in base pay per yr. Third-year VPs can earn over $1 million in wage and bonuses, a Goldman headhunter informed eFinancialCareers.
